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Bibby Offshore Holdings Limited: First Quarter 2017 Results

25 May 2017

Bibby Offshore Holdings Limited: First Quarter 2017 Results

Bibby Offshore Holdings Limited (“Bibby Offshore” or the “Group”), a leading provider of subsea installation, inspection, repair and maintenance (“IRM”) services to the offshore oil and gas industry, today announces unaudited results for the quarter ended 31 March 2017.

Key Highlights

Unaudited

 

Quarter 

Figures in £ millions, unless otherwise stated

 

 

Q1 2017

Q1 2016

 

 

 

 

 

Revenue

 

 

14.1

20.0

Operating profit / (loss) before one-off items

 

 

(24.3)

(18.4)

One-off items

 

 

1.8

(0.3)

Operating profit / (loss)                                                                                         

 

 

(22.5)

(18.7)

 

 

 

 

 

EBITDA before one-off items

 

 

(20.6)

(14.7)

EBITDA

 

 

(18.8)

(15.0)

EBITDA margin (%)

 

 

(133%)

(75%)

 

 

 

 

 

           

Note: EBITDA is defined as net profit for the period plus finance costs, income taxes, depreciation and amortisation

Howard Woodcock, Chief Executive of Bibby Offshore, commented:

“We had a strong start to Q1, executing work won towards the end of 2016. However, the signs of a pickup in the market from increased tendering activity seen at the start of the year has not been maintained due to poor market conditions. We are seeing customers defer decisions on work, which affected trading in Q1 and this is carrying over into Q2. As a result, the pipeline of work has not been translated into secured work, resulting in lower levels of utilisation. Additionally, this was further affected by some reduced vessel availability due to planned maintenance, with the Bibby Sapphire and Bibby Polaris in dry dock.

However, we have made excellent progress in securing and renewing framework agreements with key customers to underpin future awards which are already materialising, and we expect further awards throughout the year.  

Importantly, we have secured additional liquidity both through asset funding and securing the previously announced liquidity support offered by Bibby Line Group.”

Key Highlights       

  • Cash balance as of 31 March of £31.0m, down £5.8m after £4.5m of maintenance costs
  • DSV fleet utilisation at 29%, reflecting seasonal and market related conditions
  • Dry docking and maintenance of the Bibby Sapphire and Bibby Polaris completed safely and under budget
  • Three-year Framework Agreement signed with ConocoPhillips for diving, air diving and construction support services
  • Two additional three-year Framework Agreements also signed with Chevron and BP for ROVSV support diving, and air diving and construction support services, respectively.
  • Successful completion of an umbilical installation project for ConocoPhillips in January
  • Contract wins during the period from clients including ConocoPhillips, BP, Dong, Shell, James Fisher, EnQuest, TAQA and Fairfield in the UK and Shell in the US
  • Flexlay project successfully completed for Shell utilising Polaris carousel
  • Continued traction in diversifying revenue base through air diving, decommissioning and flex lay work

Recent Developments

  • Olympic Bibby has now returned to full service after being repositioned to Norway during the winter period and work has already been secured with Centrica, Chevron, Aker BP and Tullow for Q2
  • Contract won for TAQA for construction project involving design engineering, procurement, fabrication and offshore installation activities
  • Contract won for Fairfield for decommissioning scopes
  • Completion of a CNR decommissioning project planned for July utilising Olympic Bibby and Olympic Ares
  • Dorothy Shepherd appointed as General Manager, Renewables, to work alongside Graeme Wood to drive existing business development and tendering efforts
  • Bibby Offshore secured additional liquidity through amendment of the RCF supported by £10m liquidity support from Bibby Line Group (“BLG”).

ENQUIRIES

Bell Pottinger                     +44 (0)20 3772 2500

Henry Lerwill

Joanna Davidson

Ariella Levine

ABOUT BIBBY OFFSHORE

Bibby Offshore is a leading provider of subsea installation and IRM services to the offshore oil and gas industry. The company offers an integrated service portfolio to a diversified client and contract base; including project management, engineering, procurement and subsea intervention services to construct, maintain and extend the life of subsea oil field. It is headquartered in Aberdeen with regional offices in Newcastle, Norway, Singapore and Houston, USA. www.bibbyoffshore.com

Bibby Offshore is part of Bibby Line Group, a diverse and forward-looking family business delivering personal, responsive and flexible customer solutions for over 200 years.

Bibby Line Group is a £1.2 billion business, operating in more than 20 countries, employing over 4,500 people in industries including retail, offshore, financial services, distribution, shipping, marine based businesses, plant and site equipment hire.

To find out more about Bibby Line Group, visit www.bibbylinegroup.co.uk.                                                                  

Special note regarding forward looking statements